1) Uber raised $8.1 billion in it’s IPO (Initial Public Offering), which was priced near the bottom of the range. Uber sold 180 million shares at $45 each, making its listing among the 10 largest U.S. IPOs. This gives Uber a market value of $75.5 billion dollars, however Uber is deeply unprofitable with $3.04 billion dollars in losses last year.
2) Traders wait to see if President Trump hikes tariffs today. U.S. equity futures were little changed this Thursday while traders wait for the midnight deadline when tariffs are scheduled to take effect. These tariffs will be imposed on $200 billion dollars worth of Chinese goods. Fears are that market reaction will be severe, which either way the tariffs goes.
3) The U.S. trade deficient has widened to $50 billion dollars in March, up 1.5% from February. Economists had anticipated the U.S. trade deficit to fall, but much of the increase came from higher crude imports.
4) 9 MAY 19 Stock market closings:
Dow 25,828.36 down 138.97 Nasdaq 7,910.59 down 32.73 S&P 500 2,870.72 down 8.70
1) Germany’s business outlook falters amid Brexit concerns of potential US tariffs, especially on their car exports in addition to uncertainty of the German people. Germany has the largest European economy.
2) The father of Reaganomics says it’s time to get out of the market. He cautions that the end of easy money policies, the huge deficit and a near record economic expansion are all signs of a pending market collapse.
3) Trade talks continue between China and US as tariff deadline nears causing worries of talks failing. But after meeting with his advisers and Chinese officials, President Trump has extended that deadline citing the talks are going so well. Negotiators have reached a compromise on key issues, such as China’s requirement that American companies give intellectual property and technology to do business in China, more purchases of agriculture and energy products such as liquid natural gas. But so far, there hasn’t been a signing of an official agreement.
4) 22 FEB 19 Stock market closing:
Dow 26,031.81 up 181.18 Nasdaq 7,527.54 up 67.84 S&P 500 2,792.67 up 17.79
1) Economic growth revised downwards to 3.4% for the fourth quarter.
2) De Beers, the major marketeer of diamonds, is fighting back on lab-grown diamonds. For decades De Beers has refused to sell artificial diamonds, but the widen price gap is cutting into the sales of traditional diamonds, with artificial diamonds now 42% lower. With growing sales to the millennials, De Beers has invested in a factory to produce its own artificial diamonds.
3) The Dow had the largest single day gain in history of over 1000 points, a drastic reversal of the previous consecutive days of large losses. The sudden unexpected surge is driven by the best holiday retail sales season in six years, with $850 billion dollars in Christmas sales, making it a record breaking season. Fears abound that this will be reversed in the near future because of the troubled world economies.
4) 26 DEC 18 Stock market closings: Record breaking gains.
Dow 22,878.45 up 1086.25 Nasdaq 6,554.36 up 361.44 S&P 500 2,467.70 up 116.60
10 Year Yield: up at 2.80%
Oil: up at $46.62
24 DEC 18 Previous stock market closings (Monday):
Dow 21,792.20 down 653.17 Nasdaq 6,192.92 down 140.08 S&P 500 2,351.10 down 65.52
The U.S. unemployment rate has fallen to 3.9%, the lowest it has been in over a decade. The economy is doing tremendously well and analyst/economists are stating wage inflation are on the horizon, while the actual wage inflation is rising slightly.
American job employers are sitting on a lot of jobs though, not able to find qualified workers as shown in the past. The Job & Labor Report released last Tuesday, May 8, 2018; by the Bureau of Labor Statistics (US Dept of Labor), indicated that 6.6 million jobs were added in the last day of March 2018. Jobs increased from the beginning of March 2018, where it was around 4.6 million jobs to the end of March, which became 6.6 million jobs.
Economists have indicated with the inflation rising, the Federal Reserve may be more determined to raise interest rates because the job market and the economy is healthy. With an accelerating economy and the labor markets doing good, one can expect the The Fed to be monitoring the situations accordingly. -SB
Bureau of Statistics: U.S. Department of Labor (https://www.bls.gov/news.release/jolts.nr0.htm)
Asian stocks took a severe hit today as China economic woes continued to spiral downward. Japanese markets and Chinese markets went lower Thurs because of anxiety toward China’s economy. Oil prices also declined adding more frustration to already turbulent situation.
US crude declined more then 4%, while Brent crude price declined more then 3% for the entire trading day. Asian markets turbulent market conditions have become common late last year and early this year, and the trend probably will continue throughout the second quarter.-SB